Talaat Moustafa Group Holding (TMG) releases its consolidated financial results for H1 2022, Invest-Gate reports.

TMG’s consolidated profits jumped 27% in H1 2022, hitting EGP 1.09 bn, up from EGP 857 mn in H1 2021.

The company’s revenues increased 29% on an annual basis, recording EGP 7.093 bn in H1 2022. The company’s profits and revenues are in line with banks’ expectations, but contractual sales are opposite to expectations, according to the company’s statement.

Youssef Al-Banna, equity research analyst at NAEEM Holding for Investment, says that the profits and revenues achieved by the company are close to expectations, although the company started delivering the units of the Celia project in the NAC in Q2 2022. On the other hand, the contractual sales are opposite to expectations, as they decreased by 45% to reach EGP 11.3 bn.

Moreover, Mahmoud Gad, senior equity research analyst for Real Estate Sector of Arab African International Securities, explains that the real estate sector is characterized by being seasonal, which led to a decline the contract sales due to the Noor sales in 2021.

In the same vein, Aly Adel, a real estate sector analyst at Beltone Financial, explains that the decline in the group’s contractual sales is not worrisome. Adel also expects that H2 2022 will see greater growth in sales and profits, supported by sales of Noor and Madinaty, as well as the hotel sector.

According to the recent data, the company’s profits and revenues reached EGP 13 bn by the end of June 2021. It also had liquidity of about EGP 2 bn until the end of last March.